The TB, which stands for "Think Basic," will be driven by a 1.3 liter inline four-cylinder engine, linked to an electronically controlled 4-speed automatic transmission.
Hyundai hopes to sell upwards of 200,000 copies of the TB, mostly in Europe, but also in Korea and Japan, a spokesman said.
"Our growth in Europe had reached a bit of a plateau and it`s because we`re not in this segment," the spokesman said.
The TB, to be sold under a different name, will be introduced in production form at the Geneva International Motor Show in March 2002. It will go on sale as early as April 2002.
Hyundai currently has no plans to bring the TB to the United States, the spokesman said.